How Can Foreigners Buy and Sell Real Estate in Turkey
Turkey, with its stunning landscapes, rich culture, and booming real estate market, has become a popular destination for foreign investors. Whether for personal use or investment purposes, purchasing and selling property in Turkey has never been easier for foreigners. In this blog post, we will guide you through the steps, legal requirements, and tips for buying and selling real estate in Turkey.
Turkey welcomes foreign real estate buyers with a straightforward and transparent process. According to Turkish law, citizens from most countries are allowed to buy property, with a few exceptions due to diplomatic relations. However, foreign ownership is restricted to 30 hectares per person and some military zones are off-limits.
- a. Research the Market: Before jumping into any purchase, it’s important to thoroughly research the Turkish real estate market. Different cities and regions offer diverse investment opportunities. Istanbul, for example, is ideal for both residential and commercial properties, while coastal cities like Antalya and Bodrum are great for vacation homes.
- b. Work with a Real Estate Agent: Hiring a reliable and experienced real estate agent can make the process smoother. A professional agent will help you find the right property, negotiate prices, and ensure all legal documents are in place.
- c. Obtain a Turkish Tax Number: Foreign buyers need a Turkish tax identification number, which can be easily obtained at the local tax office. This number is necessary for opening a bank account and completing the property purchase.
- d. Open a Turkish Bank Account: A Turkish bank account is required to handle the financial transactions involved in purchasing the property. You will use this account to transfer funds for your real estate purchase and for ongoing property-related expenses.
- e. Get the Title Deed (Tapu): Once you’ve selected your property, both buyer and seller must sign the sales contract. After completing the necessary checks and payments, you will receive the title deed, also known as “Tapu,” officially transferring ownership to you. The transaction takes place at the Tapu Office in the presence of both parties.
- f. Conduct a Property Valuation Report: A real estate valuation report is mandatory for foreign buyers to ensure the property’s market value. The government requires this report to prevent any overpricing.
- g. Pay the Necessary Fees: The following fees are required to complete the purchase process: Title deed transfer fee (approximately 4% of the property’s sale price)
Notary fees
Agent commission (generally around 3% of the purchase price) - h. Insurance: Earthquake insurance is mandatory in Turkey and must be obtained when purchasing property.
Foreigners can easily sell property in Turkey, and the process is similar to buying. Here’s a step-by-step guide:
- a. Market the Property: Work with a real estate agent to list your property. Ensure that your property is priced correctly based on the current market trends.
- b. Find a Buyer: Once you have a potential buyer, both parties need to sign a sales contract. The contract should detail the sale terms, including the price, payment schedule, and any other conditions.
- c. Pay Capital Gains Tax (if applicable): If you sell your property within five years of purchase, you might be subject to capital gains tax. However, properties held for more than five years are exempt from this tax.
- d. Transfer the Title Deed: Once the agreed amount is paid, the property title will be transferred to the new owner at the Tapu Office. Both buyer and seller must be present.
Foreigners who purchase real estate worth at least $400,000 are eligible to apply for Turkish citizenship. Additionally, property buyers can apply for a residence permit, making the process of living in Turkey easier.
- Work with Reputable Professionals: Always work with licensed real estate agents and legal advisors familiar with the Turkish market.
- Check for Encumbrances: Before purchasing, ensure the property is free from any debts or legal encumbrances.
- Understand the Market: Property prices can vary greatly between cities, so make sure to understand the local market where you intend to buy or sell.
- Consider Future Value: Location is key to ensuring your property appreciates over time. Areas undergoing development or near major cities can offer higher returns on investment.
Istanbul Property
Buying and selling real estate in Turkey is a relatively simple and lucrative process for foreigners. With the right guidance and a good understanding of the legal framework, you can make the most of the growing Turkish property market. Whether you’re looking for a holiday home, an investment, or even a new place to live, Turkey offers many opportunities for foreign investors.
